Starting a new business? Get 40% off our accountancy services for 3 months! 😀


As the government hopes to save at least £1.2 billion in pension bills, more than 2 million employees in the public sector will feel the consequences. They are now finding out how much more they will have pay in pension contributions as of April next year. The maximum increase is said to be 2.4% however, the number of people who will have to pay extra towards their pension has also increased.

Those who are earning less than £15,000 per year will not be expected to contribute more. For employees earning between £15,000 and £21,000 pension contributions will increase by 0.6% with the exception of teachers whose payments will increase by this same amount up to the higher threshold of £26,000. This of course means that higher earning teachers will have to make up the contributions.

The general secretary of the National Association of Head Teachers, Russell Hobby has spoken out. “The government had made up its mind a long time ago to raid the teachers pension scheme. We now have the privilege of commenting on how efficiently it plans to do so.”

The highest paid teachers are expected to pay no more than 8.8% of their wages in pension contributions if they earn above £112,000 per year as opposed to higher paid staff of the NHS who will be paying a maximum of 10.9% if earning over £110,273.

The government predicts that the extra contributions will result in savings of £530 million from NHS employees, £300 million from teachers and £180 million from those in civil service. In addition, it has been reported that the government are already intending to discuss further increases in pension contributions over the next five years.

About The Author

Lee Murphy

MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.

More posts by this author
Inline Feedbacks
View all comments

Read more posts...

June 2022 Client of the Month: Manea Kella

This month we spoke to Adrian Manea, architect and director at Manea Kella, a London based RIBA Chartered architecture and interior design…

Read More

Succession Planning for Business Owners: What Comes Next?

When you own a business, it’s extremely normal to feel like you’re surviving one day to the next – ‘winging it’, as…

Read More

The Accountancy Partnership – Our Positive Reviews

Here at The Accountancy Partnership, we’re proud of our customer reviews The reviews we receive from our customers show how hard we…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.


You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?


Call us on 020 3355 4047 if you’re not sure.